Sopuruchi Onwuka

The Industrial sector of the Nigerian economy grew by 1.34 percent from the first quarter of the year to Second quarter, indicating a positive trend that that is yet to be felt in the markets where inflation continues to wipe all gains in reviving the country’s parlous economic state.

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According to figures from the Nigerian Bureau of Statistics (NBS), the industrial sector led growth in the non petroleum sector; ahead of services and agriculture.

According to the figures, the industries category grew by 1.34 percentage points from the 2.19% growth rate in the first quarter (Q1) to the 3.53% growth rate in the second quarter (Q2) of 2024.

This represents a 3.23 percentage points annual growth rate from the 0.31% growth rate in Q1 2023 to the 3.53% level by Q2 2024.

In the same period, agricultural output increased by paltry 0.51 percentage points, from a 0.9% growth level in Q1 2023 to a 1.41% level in Q2 2024,

Truer picture of the economy from the figures showed that the service sector was the major driver of real GDP growth in Q2 declined by 0.56 percentage points in the last 18 months from 4.35% in Q1 of 2023 to 3.79% in Q2 of 2024.

According to NBS, the industry sector comprises Mining and Quarrying, Manufacturing, Construction and Electricity, Water and Gas. It stated that mining and quarrying had the highest growth within the Industrial sector, while Construction recorded the lowest growth.

Despite leading growth in the non oil sector, the industrial sector, especially the manufacturing segment, has shown very disappointing results inflicted by unfavorable market conditions, including exchange rate volatility and rising operating cost.